Everything You Wanted To Know About Bear Markets

Key Characteristics To Keep In Mind

If there’s one thing we can say for certain, it’s that bear markets tend to come and go pretty quickly. Take a look at the table below. Going back to 1929, the average length of time bear markets have lasted is 324 days, or around 10 and a half months. The longest bear market was triggered in 2000 by the collapse in tech stocks, which was exasperated by 9/11 and the Enron scandal. The shortest bear market, at 33 days, occurred in 2020 due to the global response to Covid-19.

Cryptos Facing Their Own Dotcom Reckoning

Bitcoin, Ether and nearly every other cryptocurrency are mired in their own bear market. Today, Bitcoin traded as low as $20,000, a significant discount from its all-time high of $68,925 set back in November 2021. Since then, the entire crypto asset class has lost a little over $2 trillion in market value as popular tokens such as LUNA have crashed to $0. As a result, crypto lender Celsius froze withdrawals this week and crypto exchange Coinbase announced an 18% workforce reduction.

A Fabulous Buying Opportunity

I would be remiss if I didn’t point out that we could see a treasure trove of buying opportunities open up, in stocks as well as Bitcoin. We may not have found a bottom yet, especially if inflation doesn’t show signs of tapering. I urge investors to stay diversified, add to their gold position if they can and, most important of all, stay positive. This too shall pass.

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